No paperwork financing

[Kisha Peterson]

I’m a newbee so I need some good advice.  I cash closed ($75K) on a property 4 weeks ago.  It wasn’t my intent to pay cash but Covid happened and many lenders were at a standstill so I ran out of time (it was purchased on auction and I only had 45 days).  

I have credit but just recently resigned from my 9-5, so I have no income on paper.  I just found a lender that’s willing to give me $42K with no paperwork.  Here are the deets: 12 months, no prepay penalty, 12.2% interest only, 1 million in liability insurance (not sure why since I’m not rehabbing).

It’s currently rented and I’m not doing a rehab, I just didn’t want so much of my cash in the house!  I plan to keep buying!  Taking on the note will add $10,600 in additional closing costs and interest for $42K of my money back.  However, I was thinking I could refinance later with better terms.  But that’s no guarantee.  

Is it worth it to take on this note?  Help!!